There’s always something to howl about.

Mama Grizzly Knows Sumptin’: It’s Sunset For Low Mortgage Rates

One of the things I love about the internet is that links last.  For your soap-operatic pleasure, Sarah Palin asks a national author if he read his own newspaper, when he criticized her remarks about inflation:

So, imagine my dismay when I read an article by Sudeep Reddy in today’s Wall Street Journal criticizing the fact that I mentioned inflation in my comments about QE2 in a speech this morning before a trade-association. Here’s what I said: “everyone who ever goes out shopping for groceries knows that prices have risen significantly over the past year or so. Pump priming would push them even higher.”

Mr. Reddy takes aim at this. He writes: “Grocery prices haven’t risen all that significantly, in fact.” Really? That’s odd, because just last Thursday, November 4, I read an article in Mr. Reddy’s own Wall Street Journal titled “Food Sellers Grit Teeth, Raise PricesPackagers and Supermarkets Pressured to Pass Along Rising Costs, Even as Consumers Pinch Pennies.”

It’s common knowledge that Sarah Palin is a vacuous bimbo, who gathers her economic news from the Wasilla Women’s Club Newsletter, right ?

Call me suspicious but I watched an amiable dunce win the Cold War, without firing a shot.  Let’s just say I’m less inclined to question the intelligence of country bumpkin politicians, after living through Reagan, and am more inclined to second guess the propagandists at the major dailies.

Whodathunk Mama Grizzly would face the Wall Street Journal, though?

Mama Grizzly and Mama Brady know something about inflation; they do the weekly grocery shopping.  When Mama Brady told me that our grocery budget had to be adjusted upwards, while I was remarking that our budgeted monthly fuel expenses had to be adjusted  as well, I started thinking that inflation might just be around the corner- that’s not good for mortgage rates.

CONCLUSION:  Significantly higher mortgage  rates (200-300 bp) are in the bag.  If the dollar collapses, it will happen sharply (like within a few weeks of the collapse).

You don’t have to be George Soros, Gerard Celente, or Peter Schiff to see this coming.  The Fed’s propaganda arm, will do its best to sell crazy to the enlightened, while the rest of the propaganda machine will assuage the public’s fear with feel-good programming.

It’s so simple, even a Mama Grizzly can figure it out…in the Wasilla Supermarket.

**************************************************************

UPDATE:   The Huffington Post reports that Sarah was set straight:

Sudeep Reddy has responded in the WSJ to Palin’s Facebook note. He cites Labor Department data to reiterate that Palin’s argument about food prices is not grounded in fact, and he continues:

Weak demand, high unemployment and thrifty shoppers have led retailers to keep many prices from rising despite the rising cost of some commodities, including coffee and sugar. … Critics of the Fed’s quantitative easing policy are focused primarily on concerns about potential future inflation.

Palin’s mistake is that she assumed that the article, which reported that wholesale commodities prices are rising, was a measure of inflation. The WSJ ‘journalist’,  corrected our little hick.

Wait a minute. Aren’t rising wholesale prices the definition of the beginning of the cost-push inflationary cycle? Damn, I’m confused.